Young Australians face intense pressure to ‘have it all today’ as financial pressures mount

Younger Australians are set to face a “perfect storm” of financial pressure in the new year, as the majority of people aim to make themselves better with money.

New survey data from MLC shows Australians are trying to get ahead financially in 2026, with more than one in two prioritising their finances in the new year.

According to the survey data, 62 per cent of Australians aged 31 to 45 are concerned about their finances, with younger workers aged 18 to 30 close behind at 58 per cent.

Older Australians are less focused on their finances, although 46 per cent are still worried about their financial position.

This is overshadowing traditional goals, such as getting healthier or spending more time with friends and family.

MLC finance expert Jenneke Mills told NewsWire young Australians were still feeling the pinch, and it was not surprising they were trying to prioritise their finances to get ahead in the new year.

“There is a perfect storm of pressure that exists for young people at the moment,” she told NewsWire.

Ms Mills said younger people are facing psychological pressure “to have it all today”, which is having a broader impact on not only their spending habits but also their mental wellbeing.

“Young people look around them and feel they should be able to simultaneously build a career, buy a property, invest early in their lives, travel and start a family,” she said.

“They do it in a very public forum given we are so connected through social media, so it becomes really easy to create unrealistic benchmarks and constantly compare yourself with other people around the world.”

Ms Mills points to four quick tips Australians who want to get on top of their finances can try in the new year.

“Progress isn’t perfection, it is actually just taking one step forward at a starting point and making intentional decisions …. in practical terms, it is about focusing on what is controllable financially,” she said.

Set a budget

According to MLC, Australians should start by budgeting, as it allowed people to know where their money was going and to make conscious decisions about spending.

“A budget is permission to spend, within boundaries you set and are comfortable with. You don’t have to do it alone either,” Ms Mills said.

There are a range of free online tools, calculators and resources that enable you to get a clear picture of your current situation, and can help you set budgets and better manage your family’s finances.

Start making small savings

One of the key barriers to financial wellbeing is not having enough money for unexpected expenses that life can throw your way.

Whether it’s a car repair, medical bill, or household emergency, these costs can derail even the most careful budget.

“Even small, regular contributions can boost confidence and give households more breathing room heading into the new year,” Ms Mills said.

“In tough times, building a buffer might feel impossible, but even starting small can make a huge difference over time.

“If things do shift or change, you have some backing and a plan B.”

While the number changes depending on lifestyle factors and job security, financial experts usually suggest having an emergency fund that would cover somewhere between three to six months of essential expenses.

Write down your goals

Ms Mills also urges anyone looking to achieve their financial goals in the new year to write them down to make themselves more accountable.

“Write them down, whether it’s on a post-it note or even on your phone — just make a couple of notes about a few steps you can make toward each of your (financial) goals,” she said.

“You don’t have to solve the world’s problems in one day but if you can hold yourself to account and make a few small steps, you’ve taken it off the shelf, it’s here, it’s now, it’s live and active and it’s easier to keep up momentum once you begin.”

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Review debts

Australians looking to get ahead in the new year could start by looking at their debt levels and coming up with a plan to repay any money they owe.

“If you relied on credit cards or buy now pay later to get you through the Christmas period, don’t panic but have a plan,” Ms Mills said.

“It’s nothing to feel guilty about, more people than will be comfortable admitting it rely on credit at different times throughout their lives.”

Ms Mills says banks will negotiate, especially in a rising interest rate environment.

“If you have multiple debts now is the time to get your ducks in a row,” she said.

Ahead of the Reserve Bank of Australia’s first meeting of the year on February 2 and 3, economists have a grim prediction for homeowners.

Australia’s headline annual inflation rate dropped to 3.4 per cent from 3.8 per cent for the 12 months until November – better than experts’ predictions of a fall to 3.7 per cent.

Commonwealth Bank economist Harry Ottley said Wednesday’s figures showed mixed signals with headline inflation moderating slightly, while services inflation remained higher than expected.

“This is an uncomfortable number for the RBA,” he said.

“We maintain our expectation that they will increase the cash rate by 25 basis points to 3.85 per cent at the February meeting.”